Interest-bearing instrument of obligation.



No. 835,703. l PATENTED NOV. 13, 1906.

' C. H. DAVIS.

INTEREST BEARING INSTRUMENT OI' OBLIGATION.

APPLICATION FILED EEB.19. 1906.

tically useful only where a y 'bends of like face value and bearing like interl been the practice i 2O -bonds andthe UNITEDA STATES Y PATENT oEEIoE.

CHARLES HALL DAVIS,

or PETERSBURG, vIRcIINIA.-r l

p No. 835,703.

Specification of Letters Patent.

Patented ov.- 13, 1906.

Application filed February 1.9, 1906. Serial No. 301,919..

To all whom it may concern:

Be it known that LCH'ARLES'HALL DAVIS,

a citizen of the United States, residing at Petersburg, in the county of Dmwiddie and State of Virginia, have invented certain new and useful Improvements in Interest-Bearing Instruments of Obligation, of which the following is a specification.

' My invention relates to improvements in interest-bearing instruments of obligation, 1s illich as bonds, certificates of deposit, and the Heretofore interest-bearing bonds have been rovided with interest coupons connecte therewith.; but suchbonds and couponshave been of very circumscribed utility-'pracestare to beissued. It has in such prior constructions to engrave the interest-coupons with the face value of the-former of the latter.

gether unsuited to the issuance of interestbearing bonds, certificates of deposit, or the i like, of miscellaneous and evervarying face p value, andinI respect of which the accruing which may be negotiated-as such and which j obligor serve as a recelpt Interest is correspondingly miscellaneous or ever varying.

them with appropriate interest'- coupons, when paid by the for the Interest payment. On the contrary, without my invention a complicated system of books relating to the interest payments of 2 such instruments. would be necessary, but which is done away with according to said 1nvention.

My invention has for 'its object lthe provision of a new construction of interest-bearing bond, certificate of deposit, or like Instrument of obligation, provided with interest-coupons' flexibility of adaptatlon to and of extreme miscellaneous face or principal value and rate of interest. l

With this object in lview the inventionconsists in an instrument of `obligation having the features hereinafter described. Y' That which is regarded as new`will be set forth in the clauses of claim appended to the descripl tion.

` In the accompanying drawings, illustrating the best-known embodiment of my Invention and in which, for example, is illustrated a cerbe written and thel interest value;- This prior practice is alto-E In respect of such miscella neous face-value instruments therehas been I no way prior to my invention of providlng tiiicateof deposit'bearing interest at 4 per ycentumper annum, ayable quarterly, Figure 1 is a lface view of t e body ofthe certificate; Fig. 2, a similar view of the interest-coupons Aco'yering a period ofA one year Fig. 3, a perspective of the cetificate and interest-coupons inbook form Fig. 4, a rear view of one of the coupons.

In' said drawings the reference-numeral 1 designates the body' of the certificate, which in practice'is in blank form. It has a s ace4 I@ to receive the name of the obligor, w ch s ace for convenience of illustration isin tlie drawing filled in with the-name of a iicti- 7o tious company. It also has a suitably-desigv nated space 1b for the name of the obligee, whichfor-,con'venience of illustration is fIlled in with the fictitious name of J oe Roe and a suitably-designated-space 1c, in whic is .to the amount ofthe principal of the obligation and which for convenience of illustration is in the drawings filled in with the arbitrary amountFive hundred and seventy- 4three. lSpaces .1d 1 are also provided for 8o the signature of the' obligor or the oflice'rs thereof, if the'obligor be a co oration.. Other suitable spacesfor the date o issue of the obligation and the amount of the interest it isV to bear are provided. ,These spaces, except as made material in the following clauses of claim, may be varied or omitted and -the' form of the body Iof the instrument altered, as circumstances may require. Finally, itis provided with a suitably-designated s ace 1f 9c to receive ari 'ident' ing-legend, suc as a number, which is ar itrarily shown in thedrawings as 13. Associated therewith may be a stub 2, to be retained as a record of the obligor, bearing'suitable indicia identifying the certificate issued and the party to w om issued and other desired information. Combined with the certiiicate, being se.- cured thereto b staples 8, in the illustrated, though not exc usive, example of the invent1on, are interest-cou ons 4, covering the contemplated or possible life of the certifI- cate, which may be arranged in sheets approv .priated to desired divisions of time, couponssheets appropriated to one year and comprising four quarterly coupons being shown in the drawings 'as one convenient arrangement, -and a sufficient number of such yearly' coupon-sheets are employed, preferably-,in superposed relation, to cover the contemplated I. 1o or probable life of lthe secu1'ity 'say ten,

4 twenty, or more years.

t be indicated by the indicia Cents, Dimes Dollars, &c., and the Words Value of this coupon or the like. By means of numerals duplicated on' each cou on the bond, certificate of deposit, or'the like, and the interestcoupons combined therewith are extremely flexible. The former may be issued for any amount desired Within the scope of the general maximum transaction designed, the interest accruing at the several eriods when it is designed that interest shall Ibe payable calculated, and the amount of such interest indicated on each coupon in the columns of nu-l merals described by punching out the proper numerals in the several columns or otherwise, as may be desired. Theseveral 'coupons Will then show on their face the money value .thereof and may be negotiated accordingly.

Each coupon is provided with suitablydesignated spaces 2a, 2b,- and 2c to receive, respectively, the date of its maturity, an identiying number or legend to accord With the 'identifying number or legend on the body portion 1 and the dateof yissue of the certificate or other instrument of obligation to Which it relates, which date of issue may be Written orcut in the coupon and restrictions may be set out thereon-such,for instance,

as those appearing on the back of each coupon, (ShowninF1g-4.) Furthermore, if desired, and this is regarded as a valuablev auxiliary feature, the coupons may be rovided With columns of numerals 7', simi ar in arrangement to those described and designated as 5, exce t of arbitrarilyhighervalue and intended to e used to indicate or designate the face value of the bond or like instrument to which the coupon relates. As shown, the several columns of figures 7 are a propriated to unit, ten, and hundred dol ars and may be extended to higher value, if desired. The purpose oi these columns of numerals may be indicatedby the Words Face value of certiflc'ateH associated therewith or Words oi a like import. in said columns .of numerals, by punching or otherwise, the face or principal value may be indicated. The provision of this set of numerals 7 serves-as a l counter-check to the designation oi the interest value of the coupon indicated in the columns 5, constituting a double guard against 'fraudulent alteration in the designation of the value of the coupon, and this protection may be further increased by the restriction t appearing on the back of the coupon, the exact phraseology of /Which restriction will of course be made to suit the percentage value of the coupon.

In the illustrative example of invention shown the certificate of deposit is made out for five hundred and seventy-three dollars,

bearing interest at four per cent. per annum in four quarterly payments, the face value being Written in t e body of the certificate and punched out in the column of figures 7 The interest payable quarterly on this certificate is one per cent. of the face value thereof, and accordingly this hasv been indicated by punching out the amount $5.73

in the columns of figures 5.

When the contemplated life of the certificate covers a period of years, the arrangement of coupons shown, four on a sheet, each sheet covering a year, and the sheets'being in superposed relation, isfa very convenient arrangement thereof to facilitate the quick issuance of the certificate and the designation on the coupons of the face value thereof and the interest value of each coupon, as thereby the columns of figures 5 and 7 on each sheet-Will be in register on the coupons of the several sheets and may be simultaneously punched.

It will be apparent, of course, that if a certiiicate is issued at such time that the maturity date of lthe first coupon Will be less than a i'ull quarter or other arbitrary interestaying date, so that it Will not be entitled to have Xfull value, the interest value of this IOO coupon will be calculated and designated in the column of figures separately and apart from the other coupons.

Having thus described my invention, What l. An interest-bearing instrument of obliation, consisting of a blank body portion aving a suitably-designated space invvvhich the amount of the face value of the obligation may be arranged, and a plurality of interestcoupons, said cou ons each provided with suitably-designate like columns of numerals in which may be indicated the money value oi' the coupon at maturity.

2. An interest-bearin instrument of obligation consisting of a lank body portion havin a suitably-designated space in which may value of the obligation and a -suitably-arranged space to receive an identifying-legend, and a plurality of interest-cou ons, said coupons each provided With suitably-designated like columns of numerals in which may be indicated the money value of the coupon at maturity, 'and also with suitably-designated e arranged the amount of the face.

IOS

spaces to receive an identifying-legend corl responding to that of the body portion. 3. An interest-bearing instrument of obligation consisting of a blank body portion having a suitably-designated space in which `may be arranged the amount of the face value of the obligation, and a suitably-designated space to lreceive an identifying-legend, and a plurality of interest-coupon sheets, each sheet containin a plurality of coupons, the several coupon-s eets being arranged in su erposed relation, vided with suitably-designated like columns of numerals in Which may be indicated the money value of the coupon at maturity, and also with a suitably-designated space to receive an identifying-legend corresponding to that ofthe body portion.

4. An interest-bearin instrument of obligation consisting of a lankV body portion having a suitably-designated space in which may value of the obligation, and aplurality of interest-coupon sheets, the several couponsheets being arranged with the coupons thereof in register, and each coupon having suitably-designated like columns of numerals in which may be indicated thel money value of the coupons at maturity, and also With suitably-designated columns of numerals of higher value than the interestindicating columns of numerals in Which may be indicated the face value of the obligation.

5. An interest-bearing instrument of obliand each coupon pro-- be arranged the amount of the face in superposed relation having a suitably-designated vspace 1n which may be arranged-the amount or face value of the obligation, and a plurality of coupons connected therewith, the several coupons being arranged in superposed relation, and each coupon provided With suitably-designated like columns of numerals in which ma be indicated the money value oi' the tion at maturity.

6. An interest-bearing instrument of obligation consisting of a blank body portion having a suitably-designated space in which may be arranged the amount of the face value of the obligation, and a plurality of interestcoupons, the several coupons being arranged in superposed registering relation, and each coupon provided with suitably-designated` like columns of numerals in which may be lindicated the money value ofthe coupons at maturity, and also With columns of numerals of higher value in which may be designated the face value of the obligation.

In testimony whereof I have hereunto set my hand in the presence of tvvo subscribing Witnesses.

f CHARLES HALL DAVIS. Witnesses 'EZRA A. TUTTLE, J. F. HEYWooD.

obligal 

